Corporate Snapshot Strategy Sustainable Yield + Disciplined Growth Focus High quality, large oilinplace reservoirs Symbol TSX : TOG Average Daily Volume (1) 1.6mm shares Basic Shares Outstanding 91mm Market Capitalization /…
Foundation of TORC Building an Oil Platform for Growth Focus on reserves, production and cash flow per share growth over the long term Operational excellence Maintain strong, flexible balance sheet Unique strategic and…
Life Cycle of Resource Exploitation Cardium SE SK Conventional Development Infill / Secondary / Tertiary Recovery Repeatability Resource Capture Three Forks / Monarch Exploration / Delineation Torquay TORCs…
Light Oil Asset Base Significant inventory for continued organic growth 260 net undrilled locations Cardium: (significant lower risk Operated production base allows control of development pace and growth plan development…
Cardium Development
Cardium Trend Significant Undrilled Development Inventory West Pembina Cardium Trend Large OilinPlace: 5 mmbbls / section Land: 90 net light oil sections Depth: 1600 2000m Oil Quality: 40 API sweet Well Spacing: 4 wells /…
Development Drilling Cardium Results Economic Type Curve Parameters DCE&T (mm) 3.5 IP (365) (bopd) 93 (boepd) 115 Reserves (mbbls) 185 (mboe) 230 Capital Efficiency (/boepd) 30,500 Reserve Cost (/boe) 15.30 NPV 10 (mm)…
Monarch Prospect Exposure to Light Oil Opportunity for StepChange in Value
Monarch Prospect Large OilinPlace Exposure Monarch Large OilinPlace: 1 billion bbls (1015 mmbbls/section) Land: 150 net sections Depth: 1750 3500m Oil Quality: 30 43 API Well Spacing: 4 wells / section Est. EUR: 300 425…
Monarch Prospect Central Monarch Development Area Economic Type Curve Parameters 300mbbls 425mbbls DCE&T (mm) 7.0 7.0 Capital Efficiency (/boepd) 27,560 19,500 Reserve Cost (/boe) 23.35 16.50 Rate of Return (%) 26% 67%…
Southeast Saskatchewan Cash Flow Generation Plus Upside Potential
SE Saskatchewan Cash Flow Generator SE Saskatchewan Large OilinPlace: Conventional Pools 5 100+ mmbbls Land: 250 net sections (150 net undeveloped sections) Depth: 1000 2000m Oil Quality: 30 40 API Well Spacing: 75 150m…
SE Saskatchewan Upside Potential Economic Type Curve Parameters DCE&T (mm) 1.1 IP (365) (bopd) 33 (boepd) 36 Reserves (mbbls) 50 (mboe) 54 Capital Efficiency (/boepd) 30,600 Reserve Cost (/boe) 20.80 NPV 10 (mm) 1.2…
SE Saskatchewan Three Forks / Torquay Upside Economic Type Curve Parameters 1 Mile Well DCE&T (mm) 4.0 IP (365) (bopd) 108 Reserves (mbbls) 175 Capital Efficiency (/boepd) 37,040 Reserve Cost (/boe) 22.90 NPV 10 (mm) 4.6 6…
Financial & Economic Overview
Economic Growth is Key Reserves (Dec. 31, 2013) Key Highlights mmboe % Liquids High quality light oil reserves base supports dividend model PDP 21.2 85% P+P RLI of 12.7 years Total Proved 30.4 83% P+P 47.1 81% PDP/P+P ratio of 45%…
Disciplined Production Growth Production Growth Key Highlights 29% per share production growth Q4/13 vs Q4/12 Grew production while significantly reducing decline from 40% to 25% Decline profile supported by predictable asset…
2014 Capital Program Disciplined Growth + Sustainable Dividend 29 (17.93 net) Cardium wells On strategy 2014 capital budget Cardium: 55% of capital - Light oil development focus Growing into free cash flow Capital approximately…
Sustainability Analysis Sustainability Highlights Sustainability Sustainability Analysis Targeted 2014 average production of 10,300 boe/d Production ( 85% oil & NGLs) 2014E Average Production boepd 10,300 60% of production base…
Sustainability Plus Disciplined Growth Edm Lt (C) 2014E Average = 10,300 boepd 75 80 85 90 95 100 105 110 Run Rate Cash Flow mm 147 154 161 170 183 196 205 212 Maintenance Capex mm 102 102 102 102 102 102 102 102 Dividend mm 38 38…
Hedging Program Oil Hedges Average Floor Prices 60% 100.00 94.88 94.00 92.50 50% 54% 90.00 C WTI Average Floor Price 40% 40% 80.00 % Hedged 30% 70.00 20% 11% 60.00 10% 0% 50.00 H1 2014 H2 2014 H1 2015…
Balance Sheet Strength 350mm bank line 55% undrawn at yearend YearEnd 2013 Bank Facility 350mm Net Debt (Dec. 31, 2013) 145mm Debt to RunRate Cash Flow < 1.0x Strong Financial Position Debt to EV 15% Leverage with D/CF…
Dividend + Disciplined Growth Model Checklist Sustainability of business model driven by: Decline Rate 25% Operating Netback 50 Capital Efficiency Allin IP 365 40,000 / boepd Strong Balance Sheet < 1.0x debt / cash flow…
Summary
Investment Highlights Low Decline, High Netback Production Base Focused light oil asset base Sustainable Yield Allin payout ratio below 100% Opportunity for CPPIB to support future growth and / or M&A Strategic Relationship…
Corporate Information Management Independent Reserve Engineers Analyst Coverage Brett Herman Sproule Associates Limited BMO Capital Markets President & Chief Executive Officer Jim Byrne Jason Zabinsky CIBC World Markets Vice President,…
Hedging Program Current Hedge Summary Volume (Bbl/d) Type (C/Bbl) Index Low High Aug 1, 2013 Jun 30, 2014 500 Collar 95.00 109.30 CWTI Aug 1, 2013 Jun 30, 2014 500 Collar 100.00 107.00 CWTI Aug 1, 2013 Jun 30, 2014 500 Swap…
Significant Cornerstone Investment from CPPIB CPPIBs Relationship Investments group provides longterm strategic capital to select companies CPPIB believes are positioned to be leaders in their respective industries Ownership of 25%…
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